Russia Arrests Cyprus Broker Bosses in Big Fraud Case

Russian police (FSB) have arrested top managers of a broker company based in Cyprus. They are accused of cheating people out of more than 7 billion rubles (about $77 million).

Three suspects are now in jail. Two others are under house arrest.

Police searched the suspects' homes and offices in Moscow and St Petersburg. They found cash (over 100 million rubles), documents, company stamps, and computer devices with cryptocurrency wallets.

The FSB says the broker illegally traded shares of Russian energy and telecom companies. This broke Russian laws that ban such trading because of sanctions. The broker used fake documents and exchanged frozen American shares for Russian shares, causing big losses.

Trouble in Cyprus Too

Separately, there was a shooting at an office building in Limassol, Cyprus, where many brokers work. Police say someone shot at a company's office.

Also, a local official said Cyprus is used by drug cartels to launder money through some forex companies. Recently, Cypriot police arrested three people, including a police officer, for money laundering and extortion targeting broker firms.

The Russian case is the latest action against foreign brokers, and more investigations are expected.